02 January 2006

Brasil pulling financial rabbit from hat

Brasil, with a booming economy, is doing something almost unheard-of: not only paying its USD$15.5 billion IMF debt, but early, and on top of that, it’s paying off a USD$2.6 billion debt to the Paris Club early as well.

Many countries take out IMF loans only as an act of desperation, and the IMF usually interferes quite heavily in the country’s autonomy as part of the conditions. Many IMF loans are also never effectively repaid.

Not only is FOSS-loving Brasil on target to repay the loans, they also issued a global bond offering backed by Reals, not foreign currency and it was extremely well received.

/ME is now wondering which FOSS-supporting country will be next to demonstrate obvious signs of prosperity. Pia in particular has spent a fair bit of time telling us how motivated the Sudamericanos are (particularly about FOSS, but that’s not all) over the last few years, now we’re starting to see some tangible, measurable, obvious results.

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